Intel’s sudden retirement of long-time CEO Pat Gelsinger has sent shockwaves through the tech industry, with analysts predicting a setback for the company but an opportunity for its rivals, Taiwan Semiconductor Manufacturing (TSMC) and Arm Holdings.
TSMC, the world’s largest contract chip manufacturer, is poised to extend its manufacturing lead as Intel scales back its foundry ambitions or spins off its business. This could limit TSMC’s main competitor in the foundry space. Meanwhile, Arm can capitalize on Intel’s products business woes due to leadership instability and growing competitiveness in CPU architecture.
Intel’s stock initially jumped after Gelsinger’s retirement but plummeted 6.1% on Tuesday as Wall Street analysts remained skeptical about the company’s future prospects.
The leadership vacuum at Intel leaves a critical juncture for the business, which is undergoing its biggest transformation in 40 years. Prospective customers may lean towards Arm due to its reputation for reliability and competitive edge in CPU architecture.
TSMC stands to benefit from reduced foundry competition, while Arm can strengthen its position as the go-to choice for central processing units (CPUs). With Intel’s CEO crisis, investors are advised to keep a watchful eye on these rival companies.
Source: https://finance.yahoo.com/news/2-chip-stocks-set-capitalize-101000023.html